Right to choose: Myntra and Jabong to operate as separate units

For all the unhappy souls who thought Myntra’s acquisition of Jabong took away their right to choose, we have a piece of good news. In an interview with ET, Myntra’s Chief Executive Officer, Ananth Narayanan has said that the two companies will continue to operate as separate entities going forward and that Myntra’s team has already started working along with Jabong’s management.

“We intend to keep Jabong as an independent company. We will run it. It is the whole point about growth and synergy and we will absolutely run Jabong and Jabong has very strong Indian and international brands. Wherever there are possibilities to leverage each other, we will.”

Ananth believes there is enough space for both the brands to grow as separate units- “We are only at 3 percent online penetration and we are going to 10 percent. There is more than enough space for two large fashion brands.”

On the estimated combined sales of Myntra and Jabong after this deal, he said, “It is too soon to tell what will be the value of synergies and capabilities that we are leveraging from each other. We will know in a few months’ time.”

Myntra will not seek fresh capital post this deal. Myntra is part of the Flipkart group and they have funded the acquisition, Narayanan added.